Autoblog

From November 28 to December 11, GM is holding back incentive payments to dealers, including dealer cash and customer cash. Why? in the words of Mark LaNeve, GM's VP of North American sales, because "Anytime you can delay any kind of a payment, it helps cash flow" And cash is probably the most important four-letter word in any GM dictionary.

The withheld payments don't cover all the monies that GM sends to dealers, just various incentives. According to Automotive News' numbers, the two weeks of extra cash could let GM hold on to an extra $300 million. If GM needs $14 billion per month to operate, $300 million would extend the lifeline by... almost another day. Payments after December 11 would resume on a weekly basis, but with the new two-week delay, something like an employee paycheck. GM discussed the plan with the National Dealer Council beforehand and, unsurprisingly, the council understood. Follow the jump to read LaNeve's letter to dealers.

[Source: Automotive News - Sub. Req.]

"Like a Rock" might now refer to how quickly Chevy drops its long-time advertising agency if it doesn't get with the program. According to Advertising Age, GM marketing chief Mark LaNeve sent a stern message to Campbell-Ewald, the agency responsible for the bulk of Chevy's ads since 1922. LaNeve's message? Chevrolet is a "smart choice" and shoppers need to know it. With stagnant sales and a $756 million ad budget, the company needs results and LeNeve apparently thinks this is the way to get them: open a can of whoop-ass under business partners that may be getting complacent.

LaNeve has a good point. The quality of American cars has increased greatly in recent times, but prices have remained fairly steady. He thinks car buyers need to be told that choosing a Chevy is a "smart choice" because you're not paying a premium for buying Japanese.

Reshaping attitudes can be difficult, however. Many people still believe American cars are inherently inferior than their Japanese competition. Whether through personal experience or second-hand information, some buyers feel Japanese, and increasingly Korean cars, are somehow better. We're not sure how much one ad agency can do to fix that, but simple grids with features and prices won't cut it anymore. Maybe a move like parking Accords and Camrys in Chevy dealerships will help, but only if the dealers can get people to try them out. And if the product is truly competitive.

[Source: Advertising Age]

At a GM function Autoblog attended Wednesday night, Mark LaNeve, in his remarks to the assembled media, mentioned the Astra by name when responding to a question about Saturn. That was the first time we'd heard anyone from GM refer to the forthcoming Ion replacement by its Opel moniker in a Saturn context, and given LaNeve's stature, we took notice. We caught up with him later on and asked if "Saturn Astra" was indeed the official name, and he responded that it was being "heavily considered."

Well, he certainly wasn't kidding, as Thursday brought the official announcement that the new hatch will retain the Astra branding. When you consider that the name was kept for both the Holden and Vauxhall versions, this isn't really a big surprise. With the Ion being the the stylistic horror show that it was (this writer maintains that the Dodge Caliber looks like a Lamborghini Miura by comparison), saddling its replacement with the old name would have been the marketing equivalent of draping an albatross around its neck right out of the gate.

More commentary, plus GM's official announcement after the jump. Read on!

[Source: GM]

Mark LaNeve is out to put the kybosh on any notion that General Motors has designs on folding Saab and/or Hummer in its bid for solvency. The automaker's head of North American sales and marketing noted in a conference call that the two brands are "intrinsically woven" into GM's global outlook.

While Hummer has been experiencing growth and turning a profit, the General's Swedish outpost has been awash in red ink for many years. With a lack of fresh product and a clear brand identity, Saab has been on the 'Will-They/Won't-They' Ferris wheel of brand consolidation speculation for as long as the discussion of portfolio tightening has been taking place.

[Source: News.com.au]